Historic: Nova Peris (left) will stand for preselection for a Northern Territory Senate seat - a "pick" Julia Gillard said would have national significance for Labor. Picture: Kym Smith Source: The Australian

FORMER Labor Party President Warren Mundine says the party has "righted a wrong'' in endorsing Nova Peris for the Senate after he was among indigenous Australians overlooked in the past.

Mr Mundine, who quit the party last year, had been expected to take former NSW Senator Mark Arbib's place before former NSW Premier Bob Carr was parachuted in to become Foreign Minister.

One Labor MP told News Ltd Prime Minister Julia Gillard had chosen the prospect of electoral success "over principle'' in overlooking Mr Mundine, who would have been the first indigenous Labor Senator.

Mr Mundine said his life had moved on with his work in the private sector securing thousands of jobs for indigenous Australians but he was delighted Ms Peris would become a Senator for the NT at this year's election after the prime minister's endorsement.

"It is something that I myself have been working towards, many people over many years have been working towards it,'' he said.

"There are 112 years where the Labor Party hasn't had an indigenous representative I parliament at a national level. Finally it has happened. Many people may criticise, for me it is righting a wrong that has been there for so long.''

Mr Mundine said he would not consider renewing his Labor Party membership in light of Ms Peris's endorsement.

The PM faces a fight to get Ms Peris into the Senate, with current NT Senator Trish Crossin speaking out against the decision to replace her.

Ms Peris will stand for Labor at the upcoming election, with Ms Gillard declaring the party needs an indigenous representative in the Federal Parliament.

If successful Ms Peris will be the first Aboriginal woman to hold a seat in Federal Parliament.

The Prime Minister personally selected the Aboriginal athlete for preselection as a senate candidate in the NT in a decision that has upset Crossin.

Ms Gillard said she had engaged "in a captain's pick'' in endorsing the Olympic hockey gold medallist over Senator Crossin.

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"There has never been an indigenous Australian who has served as a Federal Labor representative,'' she said.

"I'm determined that at the 2013 election we change that.''

Asked about Senator Crossin's fate, Ms Gillard said she stood by the "tough decision''.

But Senator Crossin immediately hit out, declaring the decision had been taken without consultation or negotiation with the NT branch of the ALP "or my input as the long-serving federal Labor Senator for the NT''.

Senator Crossin has served in the Senate for 15 years and is likely to lose her spot as a result.

She says she was told of the decision on Monday evening.

"This action has been taken without consultation or negotiation with the NT branch of the ALP or my input as the long-serving Federal Labor Senator for the Northern Territory,'' Senator Crossin said in a statement.

"It has been my long-held belief that preselection should always be a matter for NT Labor branch members to decide.''

Senator Crossin said in her statement the NT ALP Branch members determined who would represent them and they were the party members whose opinions must be respected in terms of determining who can best serve the diverse interests of the NT electorate.

"As an advocate and Federal representative for the NT, I will not be making further comment until I have spoken with and consulted NT branch members and my colleagues,'' she said.

But Ms Gillard said it was a matter of national significance for the Labor Party to put forward an indigenous Australian in a winnable position at a Federal election.

"I am not going to make it routine for me to intervene in party processes,'' Ms Gillard said.

"I am a big respecter of party processes but I think there is a national significance here for our political party.''

She said it was a similar situation to when the party had undertaken affirmative action to see more women elected to federal parliament.

"If you believe as I do fundamentally that merit is distributed equitably across the population, across genders, across races then if you are looking at an outcome where you can see lots of men or not many indigenous Australians, then people of merit are missing out,'' she said.

"This is a moment when our whole political party needs to look at it too so that we are joined by an indigenous Australian in our federal Labor caucus.''

Ms Peris thanked the Prime Minister for the "amazing opportunity" to stand for Labor pre-selection for a Northern Territory seat in the senate.

"I stand here before you all today not only as an Australian but also as a proud Aboriginal woman, proud of my heritage and culture," Ms Peris said.

"I certainly understand the significance of this opportunity, and I am very honoured and humbled by this, Prime Minister."

She said she was first approached to stand for Parliament about seven to eight years ago.

"My two young kids babies at the time ... I didn't think I was ready. To be put into a position where you have a voice for Aboriginal Australians I thought I had to do a lot of work," she said.

Ms Peris attributed the CLP victory at last year's NT poll to hard work by the CLP and Labor taking their eye off the mark.

But she said that was now unravelling for the CLP.

"As an Aboriginal woman I have seen and I've been around the ropes long and hard enough to know that Aboriginal people have been disappointed with government for a long time, hence the intervention," she said.

"I was in the midst of that and I saw first hand that you can have policies but if you don't have the right people implementing it, it's never going to work."

Ms Peris said she was proud, honoured and humbled to be part of Labor.

"We are working very hard to win the next election and get the right people working," she said.

Ms Gillard said Ms Peris was a household name and many remembered her sporting triumphs, winning an Olympic gold medal in hockey at the 1996 games.

"What they show is grit and determination to get things done and I am very admiring of that grit and determination," she said.

"I believe Nova will make a great contribution in the Federal Parliament for the Labor Party for the Northern Territory and for the nation, not just because of that grit and determination but because of the work she has done since her sporting career on building opportunities for young Australians."

Senator Crossin is in Sydney hearing evidence before a parliamentary inquiry into recognising indigenous people in the Australian constitution.

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